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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Everyman Media Group Plc | LSE:EMAN | London | Ordinary Share | GB00BFH55S51 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 57.50 | 57.00 | 58.00 | 57.50 | 57.25 | 57.50 | 6,146 | 08:00:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 78.82M | -3.5M | -0.0384 | -14.97 | 52.43M |
From May 2019 to May 2024
TIDMEMAN
RNS Number : 3731N
Everyman Media Group PLC
24 September 2019
24 September 2019
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results
Continued growth and delivery against strategy
Everyman Media Group PLC, the independent, premium cinema group is pleased to report its unaudited interim results for the 26 weeks ended 4 July 2019.
Financial Highlights:
-- Revenue for the six months up 16% to GBP28.9m (H1 2018: GBP24.9m) -- Adjusted EBITDA(1) increased 61% to GBP6.6m (H1 2018: GBP4.1m) -- Operating profit increased 14% to GBP1.6 million (H1 2018: GBP1.4m)
Operational Highlights:
-- Admissions up 9.4% to 1.5m (H1 2018: 1.3m)
-- Continued growth in average food and beverage ('F&B') spend up 13.2% to GBP6.95 (H1 2018: GBP6.14)
-- Reached record market share of 3.0%
-- Two new venues added (Horsham and Newcastle), expanding the current estate to 28 venues and 92 screens
-- Full refurbishment of Walton-On-Thames and addition of a third screen at Gerrards Cross with new kitchen
-- Committed to a further 15 new venues of which four are expected to open in H2 2019 -- Trading since the period end has continued in line with the Board's expectations
(1) Adjusted for pre-opening costs, acquisition expenses, depreciation, amortisation and share based payments(.) IFRS 16 has been applied. Pre IFRS 16 EBITDA would have been GBP4.9 million, an increase of 20%
Crispin Lilly, Chief Executive Officer of Everyman Media Group PLC said:
"The appetite for Everyman has never been stronger with our continued roll-out allowing us to deliver exceptional experiences to more audiences across the UK with our increasing footprint. As a result, we have seen progress across both our financial and operational KPIs, with growth in revenue and operating profit driven by increasing admissions and F&B spend. This has resulted in the record market share we are reporting today."
"Our ambitious roll out continues both in the UK and with our first international site, which is due to open in Ireland next year. We are confident that there is significant room for expansion. We look forward to delivering our proven model to additional communities in both countries in the current period and beyond."
A video overview of the results from the CEO, Crispin Lilly, is available to watch here: http://bit.ly/EMANH12019
For further information, please contact: Everyman Media Group plc Tel: 020 3145 0500 Crispin Lilly, Chief Executive Officer Elizabeth Lake, Chief Financial Officer Canaccord Genuity Limited (NOMAD and Tel: 020 7523 8000 Broker) Bobbie Hilliam Richard Andrews Georgina McCooke Alma PR (Financial PR Advisor) Tel: 020 3405 0205 Rebecca Sanders-Hewett Susie Hudson Jessica Joynson
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
About Everyman Media Group PLC:
Everyman is the fourth largest cinema business in the UK by number of venues, and is a premium, high growth leisure brand. Everyman operates a growing estate of venues across the UK, with an emphasis on providing first class cinema and hospitality. The business has over 900 employees and is headquartered in London.
Everyman is redefining cinema. It focuses on venue and experience as key competitive strengths, with a unique proposition:
- Intimate and atmospheric venues, which become a destination in their own right - An emphasis on a strong quality food and drink menu prepared in-house
- A broad range of well-curated programming content, from mainstream and independent films to theatre and live concert streams, appealing to a diverse range of audiences
- Motivated and welcoming teams
For more information visit http://investors.everymancinema.com/
Chairman's Statement
Once again, I am pleased to be reporting on a strong period of growth, where the Group has continued to live up to its ambitions and customers have continued to embrace and enjoy our Everyman offer all throughout the UK; from Glasgow in the North, Chelmsford in the East, Horsham in the South and Bristol in the West. We have further expanded our geographic footprint, now operating 28 venues across the UK, and have continued to deliver high quality and engaging experiences for our customers. This has resulted in an increase in both the number of admissions and average spend on food and beverage.
Everyman's place in today's world
We believe that the entire experience is what defines cinema, and this is the heart of what we do at Everyman. It is not only the film, but all of its complementary components. The venue, food, drink and staff, all make up the experience.
There is significant appetite for all forms of entertainment, with continued strong leisure spend in the UK*, and cinema continues to be a much loved medium. In 2018, there were 177 million admissions, the highest since 1970, and in the same year there were around 900 film and event cinema releases theatrically. This is a huge opportunity for growth in the UK; not only have we continued to take more market share over the reported period, from 2.5% in the first six months of 2018, to 3.0% in 2019, but we are also set to benefit from being part of an expanding market. Importantly, Everyman's venues, location, food, drink, staff and film make us relevant, modern and much loved within our communities, making us less dependent on any specific film or upcoming slate.
These market dynamics and diverse content provide us with the foundation to continue expanding our footprint and to be confident that the appetite to consume the Everyman offer continues to go from strength to strength.
*source: Deloitte UK leisure consumer report 2019
Enhancing local communities
We are proud of the positive impact that our venues are having on high streets and communities.
Our aim is to breathe new life into public spaces, either through regeneration, or new developments. The Newcastle venue was previously a nightclub, which had lain disused for four years. It has now become a beautiful space with screens able to seat 200 people at capacity, and with a premium menu that can be enjoyed either in the bar or through a waiter service to the cinema seats. Meanwhile, in Horsham we were proud to be the key leisure anchor of a broader redevelopment project in the town centre.
More recently we added a further screen at Gerrards Cross and completed a significant refurbishment of our Walton-On-Thames venue, illustrating our long term commitment to maintaining the standard of our older venues and also providing us with an uplift in local trade.
Building our team
In the period, we have bolstered our committed and enthusiastic team to over 900 in total, including key hires in digital marketing and finance as well as local venue managers to support our growth ambitions.
Elizabeth Lake joined us as Chief Financial Officer post-period end, on 16 September 2019. Elizabeth is an excellent addition to the team and will support the Group as we continue to grow.
Continued momentum
Our business model and offering has been proven to work across the UK and has once again proved its success over the last six months. Trading since the period end has been robust, and we continue to trade in line with expectations for the full year.
We have innovative and ambitious plans for the remainder of the year and beyond and remain confident and excited of what lies ahead.
Paul Wise
Chairman
23 September 2019
Chief Executive's Statement
The first half of 2019 was a demonstration of Everyman's ability to not only deliver, but to deliver ahead of the market, with our box office market share growing significantly to 3.0% from 2.5% for the same period in 2018. This has been predominantly driven by an increase in the number of venues, and the box office performance of our existing estate continues to perform well alongside an improved spend per head on food and beverages.
Growth has been delivered across revenue and operating profit, with all of our KPIs showing an improvement. A reflection of our quality F&B offering, spend per head grew to GBP6.95, up 13.2%. This was driven partly by our estate expansion with new venues having larger and better equipped bars, but also the continued menu development and an ongoing investment in the use of technology to improve service across all venues.
Alongside our commercial progress, the business continued on its ambitious path to further expand its footprint, with the opening of our Horsham and Newcastle venues, with seven screens between them. Furthermore, we delivered a successful 'Summer Love' outdoor pop-up experience at Kings Cross and announced several new partnerships with renowned F&B brands, alongside launching the Everyman app, to further enhance the customer experience.
Business model and growth strategy
Delivering exceptional leisure experiences to all
Everyman's business model is simple; our aim is to further build our portfolio of venues whilst successfully growing our existing estate by bringing together great food, drink, atmosphere, service and of course film, to create exceptional experiences for our customers.
Our growth strategy is multi-faceted:
i. Expanding the geographical footprint by establishing new venues in order to reach new customers
ii. Continually evolving the quality of experience and breadth of choice we offer at our venues
iii. Engaging in effective brand and marketing activity, to expand awareness of Everyman and increase the frequency of visits from our existing loyal customers.
Our model is one that delivers financial benefits, with the premium experience warranting a premium price point, and with more revenue-generating activities offered than the traditional cinema. As we grow, we also benefit from increasingly efficient central costs, allowing top line revenue growth to drop to bottom line.
Progress against strategy
KPIs
The Group uses the following key performance indicators, in addition to total revenue, to monitor the progress of the Group's activities:
Hot Features
Premium
26 weeks ended 27 weeks ended Year ended
4 July 2019* 5 July 2018 3 January
2019
Admissions +9.4% 1,475,425 1,348,097 2,795,359
Box office average -0.1% GBP11.27 GBP11.28 GBP11.26
ticket
Food and beverage +13.2% GBP6.95 GBP6.14 GBP6.30
spend per head
* 2018 was a 53 week year with extra week in the 27 weeks ended 5 July 2018
Progress in the Group's KPIs is driven by a number of factors: acquiring more customers, encouraging more frequent visits to venues, upgrading customers onto membership schemes and the provision of a broader range of opportunities to spend during the visits.
Enhancing the Everyman experience
Maintaining a focus on enhancing the quality of its venues, F&B offering, staff service and content programming is vital for Everyman and its continued growth.
Our Everyman venues are each uniquely designed to deliver stylish, welcoming and comfortable spaces using high quality materials whether within a brand new building or an older, traditional space.
In addition to the GBP0.25m refurbishment of our Walton On Thames venue, we invested GBP1.0m building a completely new third screen at Gerrards Cross along with an expanded bar and new kitchen now capable of serving our full Spielburger menu. These investments are important to maintain the customer experience and continued profitability of existing venues such as Walton, or as additional stand-alone investment opportunities such as Gerrards Cross.
As our best asset and at the front line of delivering an exceptional experience to our customers, we are committed to ensuring that our teams are fully supported, developed and provided with outstanding opportunities. As such, amongst a number of initiatives, we introduced new means of internal communications across the Group to drive collaboration and enhanced our training programmes to support our staff's development. I would like to thank all our teams for their unrelenting enthusiasm, passion, hard work and exceptional delivery in the period.
We were very pleased to have launched our Everyman app in June and have subsequently launched an updated version this month. The app will enhance the Everyman customer journey with improved access to upcoming venue schedules and booking, food and drink functionality, and Apple music. The technology we use as part of our infrastructure has also been upgraded to ensure we remain cutting edge, including the implementation of the next iteration of Vista (EPOS) software which delivers better remote functionality for our bar teams and the adoption of Apple music playlists throughout our venues.
The Everyman offering was once again expanded in the period, with partnerships announced with key brands including Apple, Green & Blacks, Wild Turkey, Grey Goose, Campari and American Airline. Not only have these initiatives proven to be revenue-generating, but they also broaden our audience reach and enhance the experience they have in venue.
Expansion of our geographic footprint
We were delighted to have opened a three-screen venue in Horsham and a four-screen venue in Newcastle during the period.
In addition, we were pleased to announce that we have plans in place to open our first international venue in Dublin, Ireland. International expansion represents an entirely incremental opportunity for Everyman and one we will look to pursue cautiously. There remains however continued scope for significant expansion in the UK and we will continue our ambitious roll-out in our primary market.
Whilst continuing to grow our pipeline at an exciting pace, we remain as diligent as ever in ensuring that each opportunity is correct for our business and is fully funded at the time of agreement. As with all investment opportunities, we ensure it fits our strict criteria and a minimum financial return on capital invested on any new project.
Building the Everyman brand
Everyman's marketing activity is focused on creating memorable moments and events, exceeding customer expectations, and fostering and garnering strong authentic word of mouth advocacy. In the period, we have hosted several events including our 'Summer Love' pop up cinema at Kings Cross, our fifth annual Everyman Film Festival and many Q&A sessions with high profile individuals in the film community, such as Danny Boyle and Alex Garland.
Delivering on our ambitions
We have a further 15 committed venues, with a variety of lead times through to 2022. In addition, we have a further eight sites on which we have instructed lawyers and we continue to consider a range of new opportunities, some that can be delivered quickly, often within twelve months, once signed. Specifically, we look forward to opening London Broadgate, Manchester St Johns, Clitheroe, Wokingham and Cardiff before the end of the calendar year.
Alongside geographic expansion, we will continue to enhance the quality of experience for our customers and develop our F&B offerings.
Trading in the first 26 weeks of 2019 was robust and has continued in line with expectations post period. The Board is confident of meeting expectations for the full year and driving growth in the period ahead.
Crispin Lilly
Chief Executive Officer
23 September 2019
Chief Financial Officer's Statement
Revenue for the period was up 16.1% on last year to GBP28.9 million (5 July 2018: GBP24.9 million, full year to 3 January 2019: GBP51.9 million). This result is particularly pleasing given the extra week of trading in the 2018 comparable period.
The Group's adjusted operating profit before depreciation, amortisation, pre-opening expenses, and share-based payments was GBP6.6 million (5 July 2018: GBP4.1 million, full year to 3 January 2019: GBP9.2 million). The pre-IFRS16 equivalent as has historically been reported would have been GBP4.9 million for the period.
The Group generated a profit for the period of GBP0.6 million (Pre-IFRS equivalent GBP1.1 million, 5 July 2018 GBP0.8 million, full year to 3 January 2019 GBP2.0 million). The impact of the implementation of IFRS 16 has resulted in a reduction in reported profit due to the charge for depreciation on right-of-use assets and the interest charge on lease liabilities being greater than the charge for rent that would have been reported pre IFRS 16. The interest charge on the lease liabilities is higher in the earlier years of a lease, as a significant number of the Group's leases are relatively new, this has resulted in a reduction in reported profit. This net impact on reported profit is GBP0.5 million.
The effective tax rate is lower than the standard rate of corporation tax for the six-month period ended 4 July 2019 due to the effect of deferred tax arising from the valuation of share options (both exercised and unexercised).
The share-based payment expense for the period was GBP0.4 million (5 July 2018: GBP0.2 million, full year to 3 January 2019: GBP0.5 million) reflecting share option incentives provided to the Group's management and employees.
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Cash flows
Net cash generated in operating activities was GBP2.9 million (5 July 2018 cash used: GBP2.3 million from operating activities, full year to 3 January 2019: GBP7.6 million generated from operating activities). Net cash outflows for the year, before financing, were GBP6.0 million (July 2018: GBP9.3 million, full year to 3 January 2019: GBP15.5 million). This is largely represented by capital expenditure GBP8.4 million on the expansion of the business through build costs and refurbishment of venues.
The movement in trade and other payables in the period is largely due to construction invoices relating to the new venues in Horsham and Newcastle.
Cash held at the end of the period was GBP1.9 million (5 July 2018: GBP3.1 million, 3 January 2019: GBP3.5 million). The cash held will be invested in the continuing development and expansion of the Group's business.
The Group has access to a GBP30m facility of which GBP11m was drawn by the end of the period.
Openings and capital expenditure
During the period, the Group opened a new three-screen venue in Horsham at the end of March 2019, and a four-screen cinema in Newcastle at the beginning of May 2019.
During the period the Group exchanged contracts on further venues at Kings Road Chelsea, Dawson Street Dublin and Egham. This is in addition to the pre-existing contracts for London Broadgate, Cardiff, Manchester, Clitheroe, Northallerton, Plymouth, Lincoln, London's Borough Market, Tunbridge Wells, Durham, Wokingham and Edinburgh.
The Group continues to invest in its infrastructure and head office to support the growth of new venues, investment in capital spend was GBP8.8 million, of which GBP8.4 million was on venues, the remainder being development of the Everyman App and general infrastructure.
Elizabeth Lake
CFO
23 September 2019
Consolidated statement of profit and loss and other comprehensive income for the period ended 4 July 2019 (unaudited)
Six-month Six-month Year
period period ended
ended ended
4 July 5 July 3 January
2019 2018 2019
Note GBP000 GBP000 GBP000
Revenue 3 28,924 24,916 51,880
Cost of sales (11,076) (9,602) (20,248)
---------- ---------- ----------
Gross profit 17,848 15,314 31,632
---------- ---------- ----------
Other operating income - - 3
Administrative expenses (16,250) (13,950) (28,759)
---------- ---------- ----------
Operating profit 1,598 1,364 2,876
---------- ---------- ----------
Financial expenses* (1,153) - (160)
---------- ---------- ----------
Profit before taxation 445 1,364 2,716
Tax credit/(expense) 4 115 (596) (679)
---------- ---------- ----------
Profit for the period 560 768 2,037
Other comprehensive income - 16 -
for the period
---------- ---------- ----------
Total comprehensive income
for the period 560 784 2,037
---------- ---------- ----------
Basic earnings per share (pence) 5 0.78 1.08 2.89
---------- ---------- ----------
Diluted earnings per share
(pence) 5 0.75 1.03 2.78
---------- ---------- ----------
All amounts relate to continuing
activities.
Non-GAAP measure: adjusted profit
from operations
Adjusted profit from operations 6,631 4,067 9,150
Before:
Depreciation and amortisation* (4,151) (2,246) (4,563)
Acquisition expenses (1) (4) (9)
Pre-opening expenses (445) (232) (1,099)
Share-based payment expense (370) (221) (500)
Option-based social security (66) - (103)
---------- ---------- ----------
Operating profit 1,598 1,364 2,876
----------------------------------------------- ---------- ---------- ----------
Equivalent operating lease expense
included within administrative expenses
prior to IFRS16 (1,743)
----------
Adjusted profit from operations
comparable with prior year 4,888
----------
*Included within depreciation and financial expenses is GBP72,000
relating to pre-opening expenditure. This was accounted for
as pre-opening operating lease expenditure in the prior year
Consolidated balance sheet at 4 July 2019 (unaudited)
4 July 5 July 3 January
2019 2018 2019
Note GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 71,812 52,910 66,150
Right-of-use assets 6 46,833 - -
Intangible assets 8 10,326 10,191 10,655
Trade and other receivables 173 173 173
--------- --------- ----------
129,144 63,274 76,978
--------- --------- ----------
Current assets
Inventories 401 315 406
Trade and other receivables 5,144 3,060 3,790
Cash and cash equivalents 1,866 3,145 3,517
--------- --------- ----------
7,414 6,520 7,713
--------- --------- ----------
Total assets 136,558 69,794 84,691
--------- --------- ----------
Liabilities
Current liabilities
Other interest-bearing loans
and borrowings 122 15 56
Trade and other payables 10,780 8,356 12,398
Lease liabilities 7 2,054 - -
--------- --------- ----------
12,956 8,371 12,454
--------- --------- ----------
Non-current liabilities
Other interest-bearing loans
and borrowings 11,000 1,000 7,000
Other payables - 5,221 7,796
Lease liabilities 7 58,676 - -
Provisions for other liabilities - 1,838 1,794
Deferred tax liabilities 1,431 863 1,210
--------- --------- ----------
71,107 8,922 17,800
--------- --------- ----------
Total liabilities 84,063 17,293 30,254
--------- --------- ----------
Net assets 52,495 52,501 54,437
--------- --------- ----------
Equity attributable to owners
of the Company
Share capital 7,234 7,021 7,099
Share premium 41,034 38,493 39,066
Merger reserve 9,642 11,152 11,152
Retained earnings (5,415) (4,165) (2,880)
--------- --------- ----------
Total equity 52,495 52,501 54,437
--------- --------- ----------
These financial statements were approved by the Board of Directors
on 23 September 2019 and signed on its behalf by:
C Lilly
CEO
Consolidated statement of changes in equity for the period ended 4 July 2019 (unaudited)
Share Share Merger Retained Total
capital premium reserve earnings equity
Note GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 5 January 2018 7,003 38,354 11,152 (5,170) 51,339
-------- -------- -------- --------- --------
Profit for the period - - - 768 768
-------- -------- -------- --------- --------
Shares issued in the period 18 137 - - 155
Deferred tax on share-based
payments - - - 16 16
Share-based payments - - - 221 221
-------- -------- -------- --------- --------
Total transactions with owners
of the parent 18 137 - 237 392
-------- -------- -------- --------- --------
Balance at 5 July 2018 7,021 38,491 11,152 (4,165) 52,499
-------- -------- -------- --------- --------
Balance at 6 July 2018 7,021 38,491 11,152 (4,165) 52,499
-------- -------- -------- --------- --------
Profit for the period - - - 1,269 1,269
Shares issued in the period 78 575 - - 653
Deferred tax on share-based
payments - - - (263) (263)
Share-based payments - - - 279 279
-------- -------- -------- --------- --------
Total transactions with owners
of the parent 78 575 - 16 669
-------- -------- -------- --------- --------
Balance at 3 January 2019 7,099 39,066 11,152 (2,880) 54,437
-------- -------- -------- --------- --------
Balance at 4 January 2019 7,099 39,066 11,152 (2,880) 54,437
-------- -------- -------- --------- --------
Profit for the period - - - 560 560
Shares issued in the period 135 1,968 - - 2,103
Acquisition of NCI with no
change in control - - (1,510) - (1,510)
Deferred tax on share-based
payments - - - (335) (335)
Share-based payments - - - 370 370
IFRS16 accumulated restatement 6 - - - (3,130) (3,130)
-------- -------- -------- --------- --------
Total transactions with owners
of the parent 135 1,968 (1,510) (3,095) (2,502)
-------- -------- -------- --------- --------
Balance at 4 July 2019 7,234 41,034 9,642 (5,415) 52,495
-------- -------- -------- --------- --------
Consolidated cash flow statement for the period ended 4 July 2019 (unaudited)
4 July 5 July 3 January
2019 2018 2019
Note GBP000 GBP000 GBP000
Cash flows from operating activities
Profit for the period 560 768 2,037
Adjustments for:
Financial expenses 1,153 - 160
Income tax (credit)/expense 4 (115) 596 679
--------- ---------- ----------
Operating profit 1,598 1,364 2,876
Depreciation and amortisation 4,152 2,243 4,563
Loss on disposal of property,
plant and equipment 51 - 17
Transfer of property, plant
and equipment to profit and
loss - - 41
Bad debts (105) (2) 141
Acquisition expenses 1 4 9
Lease incentives amortised - 4 214
Market rent provisions - (45) (88)
Equity-settled share-based
payment expenses 370 221 500
--------- ---------- ----------
6,067 3,789 8,273
Changes in working capital
Decrease/(increase) in inventories 2 (7) (98)
Increase in trade and other
receivables (1,987) (2,014) (2,887)
Decrease in lease liabilities (308) - -
net of lease incentives
Decrease in trade and other
payables (915) (4,074) 2,332
--------- ---------- ----------
Cash generated from/(used in)
operating activities 2,859 (2,306) 7,620
Corporation tax paid - (1) -
--------- ---------- ----------
Net cash generated from/(used
in) operating activities 2,859 (2,307) 7,620
--------- ---------- ----------
Cash flows from investing activities
Acquisition as business combination 8 (1) (4) (9)
Acquisition of property, plant
and equipment (8,439) (6,683) (22,235)
Proceeds from sale of property,
plant and equipment - - 9
Acquisition of intangibles (403) (263) (895)
--------- ---------- ----------
Net cash used in investing
activities (8,843) (6,950) (23,130)
--------- ---------- ----------
Cash flows from financing activities
Proceeds from the issuance
of ordinary shares 446 157 808
Proceeds from bank borrowings 6,000 - 6,000
Repayment of bank borrowings (2,000) (6,000) (6,000)
Interest paid (113) (121) (147)
--------- ---------- ----------
Net cash generated from/(used
in) financing activities 4,333 (5,964) 661
--------- ---------- ----------
Net decrease in cash and cash
equivalents (1,651) (15,221) (14,849)
--------- ---------- ----------
Cash and cash equivalents at
the beginning of the period 3,517 18,366 18,366
--------- ---------- ----------
Cash and cash equivalents at
the end of the period 1,866 3,145 3,517
--------- ---------- ----------
Notes to the financial statements
1 General information
Everyman Media Group PLC and its subsidiaries (together,
'the Group') are engaged in the ownership and management
of cinemas in the United Kingdom. Everyman Media Group
PLC (the Company) is a public company limited by shares
domiciled and incorporated in England and Wales (registered
number 08684079). The address of its registered office
is Studio 4, 2 Downshire Hill, London NW3 1NR.
2 Basis of preparation and accounting
policies
These condensed interim financial statements of the Group
for the period ended 4 July 2019 have been prepared using
accounting policies consistent with International Financial
Reporting Standards (IFRSs) as adopted by the European
Union. The same accounting policies, presentation and
methods of computation are followed in the condensed set
of financial statements as applied in the Group's latest
audited financial statements for the year ended 3 January
2019. Amendments made to IFRSs, specifically IFRS9 and
IFRS15, since 3 January 2019, have not had a material
effect on the Group's results or financial position for
the period. IFRS16 has had a material impact as described
in the proceeding notes.
The financial statements presented in this report have
been prepared in accordance with IFRSs applicable to interim
periods. However, as permitted, this interim report has
been prepared in accordance with the AIM Rules for Companies
and does not seek to comply with IAS34 "Interim Financial
Reporting".
These condensed interim financial statements have not
been audited, do not include all of the information required
for full annual financial statements and should be read
in conjunction with the Group's statutory consolidated
annual financial statements for the year ended 3 January
2019.
IFRS16 Leases
Effective 1 January 2019, IFRS16 has replaced IAS17 and
IFRIC4 (Determining whether an arrangement contains a
lease).
The Group adopted IFRS16 using the modified retrospective
approach on transition, recognising leases at the carried
forward value had they been treated as such from inception,
without restatement of comparative figures. On adoption
of IFRS16, the Group recognised right-of-use assets and
lease liabilities in relation to cinema venues, office
space and cars. These had previously been classified as
operating leases, including any lease incentives, favourable
leases and market rent provisions.
Right-of-use assets are measured on transition and during
the period as follows:
- Venues and office space: at an amount equal to the lease
liability less any lease incentives, favourable leases
and market rent provisions
- Cars: at an amount equal to the lease liability
The right-of-use assets at 4 July 2019 were GBP46.8m.
Lease liabilities are measured on transition at the carried
forward present value of the remaining lease payments
discounted using the Group's incremental borrowing rate
at 1 January 2019 of 3.2%. During the period lease liabilities
are measured at the present value of the lease payments
discounted using the Group's incremental borrowing rate
at inception of each lease (3.2% average during the period).
The lease liabilities at 4 July 2019 were GBP60.7m, with
GBP2.1m due within 12 months.
The difference between the right-of-use assets and lease
liabilities on transition is an adjustment to retained
earnings. Included in profit and loss for the period is
GBP1.2m depreciation of right-of-use assets and GBP1m
financial expenses on lease liabilities.
3 Revenue Six-month Six-month Year
period period ended
ended ended 3 January
4 July 5 July
2019 2018 2019
GBP000 GBP000 GBP000
Film and entertainment 16,629 15,201 31,465
Food and beverages 10,261 8,277 17,622
Other income 2,034 1,438 2,793
----------- ---------- ----------
28,924 24,916 51,880
----------- ---------- ----------
4 Taxation Six-month Six-month Year
period period ended
ended ended 3 January
4 July 5 July
2019 2018 2019
GBP000 GBP000 GBP000
Current tax - - -
----------- ---------- ----------
- - -
Deferred tax (credit)/expense
Origination and reversal of temporary
differences (222) 201 296
Adjustments in respect of prior years 107 395 383
----------- ---------- ----------
Total tax (credit)/charge (115) 596 679
----------- ---------- ----------
The reasons for the difference between the actual tax
charge for the period and the standard rate of corporation
tax in the United Kingdom applied to the profit for the
period are as follows:
Reconciliation of effective Six-month Six-month Year
tax rate period period ended
ended ended 3 January
4 July 5 July
2019 2018 2019
GBP000 GBP000 GBP000
Profit before taxation 445 1,364 2,716
Tax at the UK corporation tax rate
of 19% 84 259 516
Permanent differences (allowable
deductions)/ expenses not deductible
for tax purposes (120) (11) 19
Deferred tax not previously
recognised 107 395 383
Other short term timing differences
(potentially exercisable share options) (69) (47) (239)
Effect of change in expected future (117) - -
statutory rates on deferred tax
----------- ---------- ----------
Total tax (credit)/expense (115) 596 679
----------- ---------- ----------
A reduction in the UK corporation tax rate from 21% to
20% (effective from 1 April 2015) was substantively enacted
on 2 July 2013. Further reductions to 19% (effective from
1 April 2017) and to 18% (effective 1 April 2020) were
substantively enacted on 26 October 2015 and an additional
reduction to 17% (effective 1 April 2020) was substantively
enacted on 6 September 2016. This will reduce the Group's
future current tax charge accordingly. The deferred tax
at 4 July 2019 has been calculated based in these rates.
5 Earnings per Six-month Six-month Year
share period period ended
ended ended 3 January
4 July 5 July
2019 2018 2019
GBP000 GBP000 GBP000
Profit used in calculating basic
and diluted earnings per share 560 768 2,037
Number of shares (000's)
Weighted average number of shares
for the purpose of basic earnings
per share 71,777 71,413 70,391
----------- ---------- ----------
Number of shares (000's)
Weighted average number of shares
for the purpose of diluted earnings
per share 74,625 74,598 73,366
----------- ---------- ----------
Basic earnings per share
(pence) 0.78 1.08 2.89
----------- ---------- ----------
Diluted earnings per share
(pence) 0.75 1.03 2.78
----------- ---------- ----------
Basic earnings per share amounts are calculated by dividing
net profit/(loss) for the period attributable to Ordinary
equity holders of the parent by the weighted average number
of Ordinary shares outstanding during the year.
The Company has 4,295,000 potentially issuable shares
(2018: 5,575,000) all of which relate to the potential
dilution from the Group's share options issued to the
Directors and certain employees and contractors, under
the Group's incentive arrangements.
6 Right-of-use assets
Implementation of IFRS16 Leases accounting standard
in the period
At the beginning of the period the Group accounted for
the net present value of existing operating leases as
lease liabilities and equivalent right-of-use assets less
any lease incentives, favourable leases and market rent
provisions. The Group opted to use a modified retrospective
approach by recognising the leases at the carried forward
value had they been treated as such from inception. This
is reflected as an adjustment to retained earnings of
GBP3.1m. After accounting for newly-signed leases, contributions
from landlords and depreciating existing right-of-use
assets by GBP1.2m, the resulting figure carried forward
of GBP46.8m is shown in non-current assets.
7 Lease liabilities
Implementation of IFRS16 Leases accounting standard
in the period
After accounting for newly-signed leases, repayments of
existing leases and financing costs of GBP1m, the resulting
figure carried forward of GBP60.7m is shown in current
and non-current lease liabilities.
8 Acquisition of Group companies
Acquisitions in the period
During the period Everyman Media Group PLC acquired the
remaining A Ordinary shares in Everyman Media Holdings Limited for GBP1.7m. Consideration was paid in a share-for-share exchange of newly-issued shares in Everyman Media Group PLC. The consideration in excess of net assets acquired was accounted for as acquisition of non-controlling interests without any resulting change in control of GBP1.5m. The Group also acquired 100 Ordinary shares, being the entire issued share capital, of Foxdon Ltd (a limited company established and resident in Republic of Ireland) for EUR100 on 24 June 2019. 9 Related party transactions The purchase of A Ordinary Shares in Everyman Media Holdings Limited held by Adam Kaye and Paul Wise were acquired by way of a share exchange for newly-issued shares in Everyman Media Group PLC.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR SEFESDFUSESU
(END) Dow Jones Newswires
September 24, 2019 02:01 ET (06:01 GMT)
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